Comprehensive Annual Financial Report 12/31/2014

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CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. Notes to the financial statements — The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 35-59 of this report. Other information — The combining statements and schedules referred to earlier in conjunction with nonmajor governmental funds can be found on pages 68-83 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City of Lino Lakes' assets exceeded liabilities by $90,179,168 at the close of the most recent fiscal year, a decrease of $1,334,788 from the previous year. This decrease is primarily due annual depreciation of capital assets. The largest portion of the City of Lino Lakes' net position (52%) reflects its net investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Condensed versions of the statements of net position at December 31, 2014 and 2013 are as follows: Of the remaining balance of the City of Lino Lakes' net position, restricted net position (10%) are to be used for activities restricted by law (special revenue funds), debt service requirements and a nonexpendable environmental fund. Unrestricted net position (38%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 Governmental Activities Business -Type Activities Total 2014 2013 2014 2013 2014 2013 Current and Other Assets $ 32,904,991 $ 33,326,625 $ 14,029,608 $ 13,092,332 $ 46,934,599 $ 46,418,957 Capital Assets 36,212,984 37,854,973 27,556,022 28,423,284 63,769,006 66,278,257 Total Assets 69,117,975 71,181,598 41,585,630 41,515,616 110,703,605 112,697,214 Noncurrent Liabilities Outstanding 19,479,195 20,006,657 52,790 54,182 19,531,985 20,060,839 Other Liabilities 903,912 1,083,451 88,540 38,968 992,452 1,122,419 Total Liabilities 20,383,107 21,090,108 141,330 93,150 20,524,437 21,183,258 Net Position: Net Investment in Capital Assets 19,540,807 22,241,821 27,556,022 28,423,284 47,096,829 50,665,105 Restricted 8,666,357 11,000,033 - - 8,666,357 11,000,033 Unrestricted 20,527,704 16,849,636 13,888,278 12,999,182 34,415,982 29,848,818 Total Net Position $ 48,734,868 $ 50,091,490 $ 41,444,300 $ 41,422,466 $ 90,179,168 $ 91,513,956 Of the remaining balance of the City of Lino Lakes' net position, restricted net position (10%) are to be used for activities restricted by law (special revenue funds), debt service requirements and a nonexpendable environmental fund. Unrestricted net position (38%) may be used to meet the government's ongoing obligations to citizens and creditors. 14